The IRS will now permit taxpayers to change their bonus depreciation treatment for property acquired after Sept. 27, 2017, and placed in service during a tax year that includes Sept. 28, 2017.
Business owners rejoiced when Section 168 of the tax code was changed in 2018, doubling the bonus depreciation allowed, expanding the definition for qualified property, offering an election to opt-out of bonus depreciation, and including other potentially valuable changes. But once the proposed regulations were issued, many taxpayers had already filed their federal returns for that period.
For those taxpayers, relief is here.
Many taxpayers can now make late elections or revocations of elections by filing amended returns or by submitting Form 3115, Application for Change in Accounting Method, as explained here by the Journal of Accountancy. Even those taxpayers who filed after the changes were announced may be able to re-evaluate their return by claiming they didn’t have sufficient time to analyze their options.
If you’re a business owner who acquired qualified property, put qualified property in service, or planted or grafted specific plants (as a farming business) during the timeframes above, take a second look at your applicable tax returns. You might discover that the recent tax changes have given you a tax-saving opportunity you didn’t previously have. Feel free to contact us with questions. Image Copyright: kadmy / 123RF Stock Photo